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#2224229 - 10/23/19 04:03 PM Complete application & credit report
Onehotidea Offline
Junior Member
Joined: Jul 2015
Posts: 36
Minnesota
I had a customer drop off an application and other documents for a home refinance. They requested that I NOT pulled credit until I had the costs and an estimate of a rate which I was getting within the day. I was told that I was required to pull credit?? I don’t believe this to be a reg and is not in our bank policy?? What would require me to do so. I have taken application information before and not pulled credit that same day as long as I have an LE out within the three days of a completed application. Just wondering if anyone one knew of a reason that I would have had to pull credit the same day as receiving the application?? Thank you!

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Fair Lending
#2224232 - 10/23/19 04:13 PM Re: Complete application & credit report Onehotidea
Skittles Offline
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Skittles
Joined: Sep 2002
Posts: 13,963
TN
There is no regulatory requirement - unless it would be an odd state requirement; however I know the applicant's credit score is used with our pricing. Is that one of the items used with your loan pricing?
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#2224266 - 10/23/19 06:26 PM Re: Complete application & credit report Skittles
Onehotidea Offline
Junior Member
Joined: Jul 2015
Posts: 36
Minnesota
Yes but I was only looking to see what kinda of rate we could get knowing that they had excellent credit. thank you

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#2224277 - 10/23/19 07:24 PM Re: Complete application & credit report Onehotidea
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,455
Bloomington, IN
I was told that I was required to pull credit?? What would require me to do so.

I would go to that source and ask why.
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#2224689 - 10/29/19 06:03 PM Re: Complete application & credit report Onehotidea
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
Quote
They requested that I NOT pulled credit until I had the costs and an estimate of a rate which I was getting within the day.

The applicant doesn't have the right to tell you how to underwrite their loan. They are either applying or they are not. If they dropped off an application, that means they want to apply. If your institution procedures are to pull a credit report immediately, then you should.

If the "applicant" wants costs and rate estimates, you can discuss these things and still call it an inquiry, but once you have an application, your 3 day clock is ticking to provide the LE. You should never issue a LE without having pulled a credit report.
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#2224713 - 10/29/19 07:41 PM Re: Complete application & credit report Onehotidea
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,408
Cape Cod
There are two reasons someone might not want you to pull the report before getting the "costs and rate estimates." He's concerned about what the "hard pull" will do to his credit score (not a really legitimate concern, IMHO) or he doesn't want to pay for the credit report unless he decides he wants to apply to your bank.

I saw the other day that a bank was charging $115 for a credit report. I may not have kept in touch with the costs of these reports, but that seems high to me, and it might be a reason I'd balk at having a credit report pulled if I were truly shopping around before getting serious about an application.

But once you have an application, I agree 100% with David. Follow you normal routine for underwriting, not the applicant's wishes.
Last edited by John Burnett; 10/29/19 07:42 PM. Reason: spelling correction
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#2225366 - 11/08/19 06:42 PM Re: Complete application & credit report Onehotidea
David Dickinson Offline
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David Dickinson
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Central City, NE
$115 for a credit report? I've never seen any reports close to that.
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